The Federal Reserve Board extends by three months
its emergency lending facilities that were scheduled to expire at about
Sept. 30, indicating that the central bank deems that the U.S. economy
still needs the added support.
The extension "will facilitate planning by
potential facility participants and provide certainty that the
facilities will continue to be available to help the economy recover
from the COVID-19 pandemic," the Fed said in a statement.
The Fed's lending facilities act as a backstop, in
an effort to stabilize and improve market functioning and enhance flow
of credit to households, businesses, and state and local governments.
The following facilities are now set to expire on
Dec. 31, 2020: the Primary Dealer Credit Facility, the Money Market
Mutual Fund Liquidity Facility, the Primary Market Corporate Credit
Facility, the Secondary Market Corporate Credit Facility, the Term
Asset-Backed Securities Loan Facility, the Paycheck Protection Program
Liquidity Facility, and the Main Street Lending Program.
The Municipal Liquidity Facility is already set to
expire on Dec. 31, and the Commercial Paper Funding Facility is
scheduled to expire on March 17, 2021.
No comments:
Post a Comment